Welcome!

News Feed Item

Northern Frontier Corp. Announces its Fourth Quarter and Fiscal 2013 Financial Results, its 2014 Capital Expenditure Budget and Declares its First Dividend

CALGARY, March 20, 2014 /CNW/ - Northern Frontier Corp. (TSX-V: FFF) (the "Corporation" or "Northern Frontier") is pleased to announce its fourth quarter and fiscal 2013 financial results, its 2014 capital expenditure budget and declaration of its first dividend.

Selected Financial Highlights

       
(in 000's CAD, except as noted) 3 months ended
Dec 31, 2013
13 months ended
Dec 31, 2013
12 months ended
Dec 31, 2013 (1)
      (pro forma)
Revenue $   14,522 $  15,017 $  67,167
Gross Profit 2,955 3,077 17,570
   as a % of revenue 20.3% 20.5% 26.2%
EBITDA (2) 2,093 1,867 14,753 
   per share 
   as a % of revenue
$       0.26
14.4%
$      0.71
12.4%
$      1.32
22.0%
Net loss and comprehensive loss (409) (1,967) $    1,732
Earnings (loss) per share - basic and diluted $    (0.05) $   (0.74) $      0.16
Funded debt (3) 32,723 32,723  
Weighted average common shares outstanding (4) 8,126,304 2,643,524 11,160,609
Common shares outstanding (4) 11,160,609 11,160,609 11,160,609
Common share purchase warrants outstanding 5,115,639 5,115,639  

(1)      These amounts represent management's pro forma estimate of Northern Frontier's financial results if it had completed its business combination on January 1, 2013 rather than the actual date of September 27, 2013.
(2)      EBITDA (earnings before qualifying transaction costs, finance costs, taxes, depreciation and amortization, gain/loss on disposal of property and equipment and share-based compensation) is not a recognized measure under IFRS (defined herein). Refer to "Non-GAAP Measures".
(3)      Funded debt (loans and borrowings before unamortized debt issue costs and obligations under finance lease less cash and cash equivalents) is not a recognized measure under IFRS (defined herein). Refer to "Non-GAAP Measures".  
(4)      Amounts have been adjusted for the effect of the 1 for 15 common share consolidation completed on February 15, 2013.

Overview

Northern Frontier completed its first business acquisition in September 2013, by purchasing a civil and logistics services provider located within the steam assisted gravity drainage ("SAGD") Oilsands market of northeastern Alberta for $54.3 million. Central to our strategy is to build on a company with a solid foundation, through providing an expanding array of industrial services to the long-term asset base being developed in the resource sectors of western Canada. This acquisition has provided that platform, with a substantial asset base, solid customer relationships and a physical location proximate to substantial future growth opportunities within the SAGD market.

The company also completed two equity raises for combined net proceeds of $28.6 million to support growth through strengthening its balance sheet and deploying capital in anticipation of 2014 demands. As part of the second capital raise, the board of directors implemented a dividend policy to support a long-term cost of capital that will accelerate future acquisitions and growth of the business.

The fourth quarter of 2013 (post-platform acquisition) was focused on implementing financial systems and capital structure that would facilitate the transition of the business from a privately-held organization to one that will meet the expectations of the public markets.

Northern Frontier exited fiscal 2013 with a pro forma EBITDA of $14.8 million. The stand-alone trailing twelve month EBITDA of our platform acquisition was $16.6 million, exceeding initial expectations when we agreed to acquire the business. Overall, Northern Frontier's fiscal 2013 performance and post-platform acquisition financial results (effectively the fourth quarter of 2013) were relatively consistent with expectations. Financial results in the fourth quarter of 2013 were impacted by wet weather in early October, a deferral of a couple of client projects and an extended holiday break at the end of the quarter. This resulted in an increase in labor costs as a percentage of revenue and a decline in camp utilization. Overall, management is satisfied with the earnings capacity it acquired through the platform acquisition and expects to increase the earnings capacity of the business through fiscal 2014.

Outlook

Management expects the first half of fiscal 2014 to have moderate activity levels compared to fiscal 2013. Demand for services is currently expected to accelerate in the second half of fiscal 2014, driven by new construction and successful production results from existing facilities within the SAGD market that the Corporation participates in. Northern Frontier also expects to see growth from its capital expenditures made in the fourth quarter of 2013, including an expansion to its camp bed capacity driven by expected employee growth and equipment fleet. In addition, the Corporation expects deployment of capital into its logistics strategy in early 2014 to start contributing to earnings growth in the second half of fiscal 2014.

2014 Capital Expenditure Budget

For fiscal 2014, the Corporation's net capital expenditure program is $14.3 million, allocated as follows:

         
(in 000's CAD)   Growth Sustaining Total
         
Automotive   $           - $      355 $      355
Construction and excavating   5,375 3,020 8,395
Logistics   6,480 - 6,480
    11,855 3,375 15,230
         
Estimated proceeds on disposal of equipment     (950) (950)
         
Capital additions, net   $  11,855 $   2,425 $  14,280

Dividend Declared

Northern Frontier has declared its first quarterly dividend of $0.065 per common share, payable on April 15, 2014 to holders of record on April 3, 2014 (ex-dividend April 1, 2014). This represents an annual yield of 7.1% based on the March 20, 2014 closing price of $3.65 per common share.

Additional Information

Northern Frontier's audited consolidated financial statements for the 13 months ended December 31, 2013 and 12 months ended November 30, 2012 and fiscal 2013 management discussion and analysis ("MD&A") have been filed with the Canadian securities regulatory authorities and may be accessed under the Corporation's profile on SEDAR at www.sedar.com.

Conference call

Management of Northern Frontier will hold a conference call on Friday, March 21, 2014, at 9:30 a.m. Calgary / 11:30 a.m. Toronto time.  The call will feature remarks by Chris Yellowega, President and CEO and Monty Balderston, Executive Vice President and CFO regarding the financial results.

Conference dial-in instructions are as follows:

Toronto: 416-764-8682
North America: 888-390-0549
Conference ID: 95520669

A replay of the call will be available 24 hours after the event until 11:59 p.m. EST on March 28, 2014. To access the archived conference call, please dial 1-888-390-0541 and enter passcode 520669.

About Northern Frontier Corp.

Northern Frontier's strategic objective is to create a large industrial and environmental services business through a buy and build growth strategy. Currently, the Corporation provides civil construction and excavation services to the industrial industry, primarily in the in situ Oilsands region south of Fort McMurray, Alberta.  Through providing these services to large industrial customers in the steam assisted gravity drainage ("SAGD") region of northeastern Alberta, the Corporation focuses on the ongoing demand for services to support operating facilities, sustaining capital expenditures to maintain production levels of those facilities and the development of new production capacity.

The Corporation's common shares and common share purchase warrants are listed on the TSX Venture Exchange under the trading symbol "FFF" and "FFF.WT", respectively.

Reader Advisory

Forward-Looking Statements

This news release contains forward-looking information and forward-looking statements based on certain expectations, projections and assumptions. Certain information in this news release contains forward-looking statements including management's assessment of Northern Frontier's future operations, business prospects and opportunities, management's future expectations regarding the financial performance of the Corporation, forecasted 2014 capital expenditures of the Corporation and expected payment of dividends declared. With respect to the forward-looking statements contained in this news release, Northern Frontier has made assumptions, regarding among other things: that Northern Frontier will continue to conduct its operations in a manner consistent with past operations. Although Northern Frontier believes that the expectations reflected in the forward-looking statements contained in this news release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations or assumptions will prove to be correct. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Northern Frontier's control including, without limitation, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of exchange rates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility and timely and cost effective access to sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the forgoing list of factors is not exhaustive. Additional information on these and other factors that could affect Northern Frontier's operations and financial results are included in Northern Frontier's MD&A and other reports on file with Canadian securities regulatory authorities and may be accessed under the Corporation's profile on SEDAR at www.sedar.com. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Northern Frontier does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

This information is subject to a number of risks and uncertainties, many of which are beyond the Corporation's control. Users of this information are cautioned that actual results may differ materially. For additional information refer to the "Advisory Regarding Forward-Looking Statements" section of the Corporation's MD&A.

Non-GAAP Measures

Selected financial information for the three and 13 month periods ended December 31, 2013 is set out above and includes the following measures that are not recognized under International Financial Reporting Standards ("IFRS") and are non-generally accepted accounting principles ("non-GAAP") measures: EBITDA and Funded Debt. This information should be read in conjunction with the consolidated financial statements for the three and 13 month periods ended December 31, 2013 and the Corporation's MD&A available under the Corporation's profile on SEDAR at www.sedar.com. Further information regarding these non-GAAP measures is contained in the Corporation's MD&A.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

SOURCE Northern Frontier Corp.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
Father business cycles and digital consumers are forcing enterprises to respond faster to customer needs and competitive demands. Successful integration of DevOps and Agile development will be key for business success in today’s digital economy. In his session at DevOps Summit, Pradeep Prabhu, Co-Founder & CEO of Cloudmunch, covered the critical practices that enterprises should consider to seamlessly integrate Agile and DevOps processes, barriers to implementing this in the enterprise, and pr...
Eighty percent of a data scientist’s time is spent gathering and cleaning up data, and 80% of all data is unstructured and almost never analyzed. Cognitive computing, in combination with Big Data, is changing the equation by creating data reservoirs and using natural language processing to enable analysis of unstructured data sources. This is impacting every aspect of the analytics profession from how data is mined (and by whom) to how it is delivered. This is not some futuristic vision: it's ha...
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, will discuss how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved effi...
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
Data-as-a-Service is the complete package for the transformation of raw data into meaningful data assets and the delivery of those data assets. In her session at 18th Cloud Expo, Lakshmi Randall, an industry expert, analyst and strategist, will address: What is DaaS (Data-as-a-Service)? Challenges addressed by DaaS Vendors that are enabling DaaS Architecture options for DaaS
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
It's easy to assume that your app will run on a fast and reliable network. The reality for your app's users, though, is often a slow, unreliable network with spotty coverage. What happens when the network doesn't work, or when the device is in airplane mode? You get unhappy, frustrated users. An offline-first app is an app that works, without error, when there is no network connection.
The principles behind DevOps are not new - for decades people have been automating system administration and decreasing the time to deploy apps and perform other management tasks. However, only recently did we see the tools and the will necessary to share the benefits and power of automation with a wider circle of people. In his session at DevOps Summit, Bernard Sanders, Chief Technology Officer at CloudBolt Software, explored the latest tools including Puppet, Chef, Docker, and CMPs needed to...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
Advances in technology and ubiquitous connectivity have made the utilization of a dispersed workforce more common. Whether that remote team is located across the street or country, management styles/ approaches will have to be adjusted to accommodate this new dynamic. In his session at 17th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., focused on the challenges of managing remote teams, providing real-world examples that demonstrate what works and what do...